In late April, Goldman Sachs made crypto history by granting its first-ever Bitcoin-backed loan. According to a new rumor, Coinbase (NASDAQ:COIN) has teamed with Goldman Sachs (NYSE:GS) to launch the bank’s first Bitcoin-backed loan.
Coinbase and Goldman Sachs have formed a partnership.
According to a recent story, Coinbase, the largest cryptocurrency exchange in the United States, is the mystery entity that has taken on Goldman Sachs’ first Bitcoin-backed loan.
According to the report, Goldman Sachs’ Bitcoin-backed loan would strengthen linkages between the crypto and trading worlds. Brett Tejpaul, the head of Coinbase Institutional, stated:
“Coinbase’s work with Goldman is a first step in the recognition of crypto as collateral which deepens the bridge between the fiat and crypto economies.”
Although the specific amount of the loan is unknown, it was secured by a percentage of Coinbase’s Bitcoin holdings. The exchange presently houses 4,487 bitcoin, which is worth around $170 million at today’s pricing.
Bitcoin-backed loans aren’t new, and Genesis trading fund’s Matthew Ballensweig claims that his firm has already structured similar loans with Silvergate and Signature Bank (NASDAQ:SBNY). They are also “exploring similar structures with significant investment banks interested in the space.”